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Recruitment agencies predict increased demand for contract work in 2010
By Saifulbahri Ismail, Channel NewsAsia | Posted: 01 January 2010 1716 hrs

  Office workers are seen during a lunch break at the financial district in Singapore.
 
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SINGAPORE: Employment agencies are expecting hiring plans to improve in 2010. But industry experts say contract work will continue its upward trend.

This is on top of various permanent positions being made available as companies attempt to boost their workforce.

Kelly Services has been receiving more calls from employers who want to engage contract workers. The recruitment agency says it has seen a 15 to 20 percent increase in demand in recent months.

It expects the figure to stay healthy in the first quarter of next year.

Dhirendra Shantilal, senior vice-president at Kelly Services, says: "This whole global crisis has also helped companies to realise that they need to have a balance between their permanent workforce and a contract workforce. As a result of that, we're seeing a lot more companies coming to us for more contract work."

Demand for contract employment exists in all industries, especially in the financial, retail and hospitality sectors.

HR consultants say companies are still cautious and are relying on contract work due to the uncertainties in the economic recovery.

For job seekers, that means having to be flexible about accepting work on contract terms.

Paul Heng, managing director of Next Career Consulting, says: "Job seekers - whether they are fresh graduates or seasoned professionals - they have to be adapting their mindset to say that it's ok not to have a regular job.

"Maybe a contract job is even safer these days, because then at least they know they work from a certain time to a certain time.

"Whereas, if you're on a regular payroll (and if) a company that intends to downsize, they (companies) have a policy of last-in-first-out."

Another job trend to look out for next year is outsourcing.

Experts say companies will continue to be prudent and to put a lid on costs, they will outsource jobs.

Outsourcing will also help push up demand for contract work.

Kelly Services' Dhirendra Shantilal says: "In 2010, you'll also see the emergence of outsourcing services, or project work as what we call it.

"We are seeing more and more companies outsource their non-core activities. They are coming to us and say, 'can you manage this human-based activity?'

"As a result of that, you'll see us hiring more and more contract workers to fill up these projects."

Recruitment agencies are also expecting more requests for temporary jobs of between a few weeks to three months, especially during the festive season.

- CNA/ir

 


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